Foreign exchange and payments specialist Cornerstone FS (CSFS) said today that strong trading has continued into its second half, after reporting expectation-beating first half results in September.
The company said that it now expects to report full year revenue of at least £8m, a growth rate of 66% of more and once again ahead of expectations. Careful cost management also means Ebitda will also be ahead of expectations, which currently stands at £97.8k according to broker SP Angel.
Investment in its direct sales team and expanded offerings and payment methods were behind the performance, in particular an increase in the number of counterparties to broaden the number of currencies and countries it offers, to 58 and over 150 respectively. That’s seen an increase in active customer numbers and average transaction values.
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Cornerstone’s shares climbed over 5% on today’s update, taking the gain over the last 12 months to more than 150%.
The strength of current trading suggests investors can look forward to further gains as the group continues to commercialise its proprietary technology platform - prior to this update, SP Angel had a target price of 44p on the shares, three times the current 14.75p share price.
The broker also expects the company to reach a net cash position of £1m by the end of FY2024, and that robust cash generation – helped by a trimmed costs base - will pay earn-outs and loan notes through 2026E and eliminate further dilution to shareholders.